30. Small and medium enterprises (SMEs) contribute about 31% to GDP, 56% to the workforce and account for 19% of total export. To further strengthen SMEs' contribution to economic growth, a shariah-compliant SME Financing Fund totalling RM2 billion to be managed by selected Islamic banks will be established in 2012. The Government will finance 2% of the profit rate.
31. The failure of entrepreneurs is not totally due to their lack of business acumen but due to factors beyond their control such as economic recession and higher costs. Genuine entrepreneurs must be given a second chance to succeed. For this, the Government will provide RM100 million for the SME Revitalisation Fund. This scheme offers soft loans up to a maximum of RM1mil for entrepreneurs to revive their businesses. This fund will be managed by SME Bank and will be available from January 2012.
The current remaining allocation for the Creative Industry Fund under BSN is still not fully disbursed to the respective SMEs. They had waiting to get the approval letter from BSN for more than 2-5 months. The bank just keep the applicant waiting and waiting without status informed. Some even worst more than 8 months or reaching almost a year! How can we improve the current ecosystem of funding? The bad new is one of them borrow from ALONG!